• NOTICE OF DISCIPLINARY ACTION

      • #
      • 16-CH-1603
      • Effective Date
      • 24 June 2016
    • BOARD OF TRADE OF THE CITY OF CHICAGO, INC.

      NOTICE OF DISCIPLINARY ACTION

      FILE NO.: 16-CH-1603

      MEMBER FIRM: Merrill Lynch, Pierce, Fenner & Smith Incorporated

      CBOT RULE: 971. SEGREGATION, SECURED AND CLEARED SWAPS CUSTOMER ACCOUNT REQUIREMENTS

      E.  All disbursements not made for the benefit of a customer from a segregated, secured 30.7 or Cleared Swaps Customer account which exceed 25% of the FCM clearing members excess segregated, secured 30.7 or Cleared Swaps Customer of the respective origin must be pre-approved in writing by the clearing member’s Chief Executive Officer, Chief Financial Officer or their authorized representative with knowledge of the firm’s financial requirements and position.

      FINDINGS: Pursuant to an offer of settlement in which Merrill Lynch, Pierce, Fenner & Smith Incorporated neither admitted nor denied the rule violations upon which the penalty is based, on June 23, 2016, the Clearing House Risk Committee found that Merrill Lynch, Pierce, Fenner & Smith Incorporated violated CBOT Rule 971.E.

      PENALTY: In accordance with the settlement offer, the Committee imposed a $25,000 fine.

      EFFECTIVE DATE: June 24, 2016